Sir Richard Branson is plotting a £500m rival to Eurostar (Image: Getty)
Sir Richard Branson is plotting to smash ’s monopoly on Services with an audacious project to buy a dozen high-speed trains, it has been claimed.
The British billionaire’s Virgin Group is hoping to sign a contract for the trains during this financial quarter in a bid to get the jump on Spain’s Evelyn, which also wants to start running trains from London to the continent.
Project lead Phil Whittingham said will choose between two shortlisted suppliers, with models being evaluated from Alstom, Siemens, Hitachi, and Talgo.
The order is expected to exceed £500m in value, based on the cost of similar rolling stock deals.
Virgin plans to commence Channel Tunnel services in 2029, with the project requiring close to £1bn in launch funding.
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Mr Whittingham told the : “Sir Richard will take as big an equity stake as possible,” stressing that one or more partners might provide additional support.
The revelation comes as operators gear up to compete with Eurostar on the route for the first time.
Evolyn, backed by the Spanish Cosmen family, which is the largest investor in Mobico (formerly National Express), is also planning to run trains to Europe.
Virgin racing to secure rolling stock for the service, with questions over whether the market can accommodate three operators.
Eurostar runs services between the UK and Europe (Image: Getty)
The Office of Rail and Road (ORR) is currently considering whether Britain has the maintenance capacity to support new operations through the tunnel.
The review will decide whether the Temple Mills depot in east London can handle additional high-speed trains.
Eurostar has opposed applications from both Virgin and Evolyn to use Temple Mills, claiming the depot is already operating at full capacity for its fleet.
Mr Whittingham continued: “We don’t believe there is room for three operators on the route.
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The Eurostar terminal at Kings Cross (Image: Getty)
“We don’t think the economics would work for three operators competing.
“We’re hoping the regulator will determine what capacity is available and reserve it for a new competitor. And we expect the first person to come along with a contract for new trains will get that capacity.”
In 2023, Evolyn unveiled plans to purchase 12 trains from French rolling stock manufacturer Alstom, but no formal contract has yet been signed, and Alstom has since warned it cannot guarantee delivery dates.
A spokesperson for Eurostar, in which French national railway company SNCF has a majority stake, said: “The essential issue we face is not Eurostar trying to restrict access but the fact that there is already limited space available at St Pancras and Temple Mills to meet the combined growth ambitions of everyone.
“We have recently written to the new Government asking for its support in creating a framework that will enable all operators, including Eurostar, to invest on level terms in the further network expansion we all want to see.”
The ORR’s review is likely to be released this month.
Additionally, the regulator has directed HS1, which operates the UK section of the Channel Tunnel line, to cut access fees by 10% to foster competition.
By doing so annual costs will be cut by £5m beyond the reductions HS1 had already pledged, although Mr Whittingham said that the route remains expensive.
Virgin is aiming to finalise its train order and secure its place on the Channel Tunnel route once the ORR completes its review.